Powermatic Data 2025 AGM Notes

Powermatic Data 2025 AGM Notes

Powermatic held its AGM on 24 July 2025. Around 45-60 shareholders are present with some long term shareholders interested to understand the developments of the company following a rather poor but expected year.

Revenue fell 49%, Gross Profit 56% and Profits 22%.

Q1: Explaination of Poor Results

A1: 2 Main Reasons. 1 is the overstocking in recent years. Second is due to Qualcom's uncompetitive Wifi 6 products resulting in competitors like Mediatek being more attractive value prepositions. As a result, as customers progress from 5 to 6, they would rather use solutions of other companies. This explains the fall in revenue despite inventory levels seems to have returned to healthy levels for customers.

Q2: On Business Prospects Moving Forwards

A2: Current Market is niched and it means that client base is limited.

As such, to consider entering connectivity markets that have more clients but these are more competitive and it means lower margins and possibly bad debt risk that the board and management has to consider. Mentioned a recent atm machine connectivity project win that is not related to their usual wifi connectivity as an example to show that they are making some inroads progress.

Expect orders to return end of this year for Wifi 7. Customers keen but a lot of hand holding needed to guide them into this transition. As such it will be gradual process.

Gave an example of their major customer. Took them 1.5 years to transit from Wifi 5 to 7.

Especially after losing out on Wifi 6. Currently, Qualcom products for Wifi 7 looks more competitive than Mediatek (facing some issues with performance) and management believes they have an edge. Also mentioned Wifi 7 to 8 will be another 6-8 years so this Wifi 7 will be long.

Mentioned Edge AI as a big trend, will need powerful processors and in turn more powerful wifi products which is Powermatic's expertise. A potential market and opportunity for Powermatic.

Q3: On New Ceo

A3: Board does not agree with the directions that the CEO wants to take and there has been integration problems into the corporate culture. As such, decided that it is best to do the right actions for shareholders.

Re-iterated that the process was quite stringent as it is someone the executive directors know for 15 years.

Some impact onto P&L around 250k due to performance shares that has to be expensed along with the pay up till June 2025.

Q4: On New Food Factory

A4: No new progress as it is still 28% sold (12 units). Market seems to have slowed down. Good thing is that within timeline and within construction budget of 28m.

A new launch in vicinity called foodpoint tai seng has also seen slow down in sales so it is a market effect.

Overall not much worries since not financed by debt and there is the option of renting units out and also overall cost of development is low.

Conclusion: Some people know i run a monthly series of an imaginary portfolio how i would pick sgx stocks if i had 100k since Sept 2020.

Powermatic Data has been in and out of that list. After the AGM, it will still remain out.

I feel that it still needs more monitoring at this point and a possibly entry should be after 2026 agm if prospect of Wifi 7 is good and sales has picked up. The opportunity cost of waiting for 1 year while knowing that it is very likely a slow year is the reason why it will not be in the list.